Japan's economic transformation, 1947-1991

H2 History - syllabus 9174, 2027

How Japan rose from defeat to become the second largest economy in the non-communist world: government intervention, the keiretsu system, social change and international developments, and how their importance changed.

• Foundations: occupation reforms and recovery, 1947-1955

  US occupation reforms and the Korean War boom laid the foundations for Japan's later growth.

• Government intervention

  The state guided growth by choosing key industries, steering savings to them and protecting them while they grew.

• The keiretsu system and Japanese management

  Keiretsu business groups gave firms patient finance, reliable suppliers and protection from takeovers, so they could invest for the long term.

• Socio-economic changes

  A high-saving, educated workforce moving from farms to factories, and a growing consumer market, powered Japan's growth.

• International developments

  A favourable world economy and the US alliance helped Japan grow. Later shocks tested it, and after 1985 they helped create the bubble.

• Weighing the factors over time

  Government, keiretsu, society and the world economy worked together, but their importance shifted between periods.

• Put it together: What drove Japan's economic miracle?

  Choose a factor and test it against the evidence.